Changes to Australian GST legislations could prevent global retailers from trading in Australia.
According to consumer watchdog Choice, a loophole in new rulings could allow the Federal Government to stop overseas retailers' websites if they do not collect GST for purchases below $1000.
The Treasury estimates that the legislation will increase GST revenue by $300 million.
However Choice reports that the government has not undertaken modelling of the impacts of the scheme on consumers.
Choice head of communications Tom Godfrey believes the clamp down could leave Australian's missing out on speciality goods.
"Consumers buy a range of specialty products from overseas-based online stores.
"These include niche cosmetics brands like Charlotte Tilbury or Glossier, and non-standard sized clothing brands like Long Tall Sally and Pink Clove.
"If the Federal Government is going to start blocking these websites, it will disadvantage local consumers while providing absolutely no economic benefit to Australia.
"These products are not available in Australian stores.
"If the websites that supply them are blocked, consumers will lose out."
Although a Treasury spokesperson told Choice that the scheme has been devised based off of models in other markets.
"Many jurisdictions have implemented this model for supplies of digital products and services."
Changes to the GST legislation are set to take effect in July 2017.